(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000 on new service...

(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of

$11,000,000

on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to

$4,000,000

per year for each of the next

6

years. In year

6

the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at

$0.9

million. Thus, in year

6

the investment cash inflow totals

$4,900,000.

Calculate the project's NPV using a discount rate of 8

percent.

If the discount rate is 8

percent, what is the project's NPV

(Round to the nearest dollar.)

Jun 09, 2022

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(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000 on new service...

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​(Net present value​ calculation) Carson Trucking is considering whether to expand its regional service center in​ Mohab, UT. The expansion requires the expenditure of $11,000,000 on new service...

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(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000 on new service...